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Return on Equity Calculator

Find a company's return on equity (ROE) from its net income and shareholders' equity.

Change the values and press Calculate to work out your own figures.

Enter net income and shareholders' equity.

About net incomeFor the period.
About shareholders' equityAssets minus liabilities.
About currencyChanges how amounts are shown, not the math; your choice is remembered on this device.
Result
ROE
15%

Return on equity is 15%.

Show the working
  1. ROE = net income ÷ shareholders' equity

How to use it

Enter net income and shareholders' equity.

Enter amounts without commas or with them; rates are percentages (5 for 5%). Negative amounts are allowed where a sign means money paid out.

Key facts

ROE = net income ÷ shareholders' equity

Questions

What is the ROE of $15M income on $100M equity?

15%.

Formulas

ROE = net income ÷ shareholders' equity

Sources

Limitations

  • Results are estimates for planning, not offers or financial advice; lenders and banks may round, count days or time payments differently.
  • Rates are nominal annual rates compounded as you choose; payments at a different frequency use the equivalent periodic rate.

Formula version 0.1.0Reviewed